International Some Considerations For Investing Globally

I would say a lot on the wrong side of 60 would be doing the same thing ,looking at their portfolio and working out how it will compound even if it is diluted buy future taxation plans under Labor..
Some from what I read within his site and several other equities sites aim for the investment philosophy middle-- ground and the benefits available ,and over the last 6 weeks it has worked very well..the only global exposure I control is 2 banks one in Germany and one in the pre-Brexit UK--and both carry risk..

 

Was thinking about this recently. There’s appears to be quite a number of top 25/50 companies which either earn money overseas or have exposure/reliance on overseas economies.

Hopefully that increases as our economy grows over the next couple decades.

Not that it’s a substitute for VGS, but it’s good to know that 100% Oz isn’t necessarily 0% global exposure.

Be interesting to see a charts like the US has of revenue/earnings breakdown by country for our market. Anyone seen it?

 

Might be the opposite if Labor is elected and their draconian policies become entrenched. Companies here with offshore earnings might choose to relocate overseas where business is welcomed (not despised) and is not being strangled by red tape?

 

This is a great breakdown. I'm actually quite surprised at how high the international total is! I don't feel the need to have such a large weighting to international anymore.

The main risk I see is the ASX index being too small and local companies either getting bought out or listing overseas to raise more capital e.g Atlassian.

 

From memory, Amcor, Brambles and some of Ramsay and Sonic Health Care's earnings is from overseas markets. Also, I think smaller companies like Ansell derive a portion of their earnings overseas.

 

Incredible, thanks heaps!

Which page is it from? Publicly accessible? I’d like to check on it each year.

 

I’m surprised too, I was thinking maybe 15-20% at most.

 

Fantastic!
I too am surprised by how much international exposure there is in our local market.
Anyone has the numbers handy for say the US?

 

Good find @dunno

I’d have guessed around 30% with 2/3rds of that being materials. Revenue probably not the ideal measure but good enough. So ASX International exposure is materials, some financials (which is being partly unwound ; ANZ and CYBG), CSL, COH and RHC and some bits and pieces, with WFD being the real estate now gone.

 

Yes, with the major component related to digging holes in the ground it’s certainly not what I need for SANF in regard to global diversification as “insurance”.

 

Didn't see a reply to this.

You have VGS and VAE (I don't know your weightings, or need to for some thoughts) for international, which is Global with an Asian emerging tilt. Effectively you are making a bet (or informed decision) that Asian markets will outperform the established global markets.

Curious as to why you would say it is enough Europe and not enough US (VGS is ~60% US)? You have cap weighting on both.

Are you going to end up with, VGS, oh I need to go asia as asia is so hot, *add asia ETF*. Oh I have now read how great the US is, *add US ETF*. What about Europe there are some great opportunities there! *add Europe specific ETF*. What have you added as a result? Are you trying to time each zone? I am not sure the answer, it does appear to me you are possibly starting to go in a circle with your allocations.

If you are going to tilt, tilt with conviction. The only way to do that is be informed and confident in your reasons so that every little bit of information doesn't make you want to tamper.

I own VHY and even though it has performed similarly to VAS I would be happier if I just got all VAS, long term I don't think it will add any value (that's the most positive comment I can make).

 

VGS + VGE is total world ex Australia. The VAE piece I don’t really get, it’s a bet that your expectations of the regions performance exceed the rest of the global markets view of same...now just think about that and let it settle in. Either you have a unique insight, or you are punting based on a vibe.

 

Ah efficient markets. Totally believe in it. But what about paradox of the efficient markets hypothesis. The more people believe it, the less research we do (may as well just buy index funds) so the less correctly priced markets or stocks tend to be.

 

Depth of research is increasing. Markets that had little are getting much more attention. IMO research is still increasing across the board and a paradox isn't in sight.

 

Yeah but nah. Simple contra point doesn’t
Work here. Your “research” doesn’t count. 100,000 CFAs are squeezing the grape while you sleep.

 

Are you saying that you can research a stock but you cannot really ‘research’ a total market and make educated calls between (say) 2 different broad markets?

 

Micro is far easier than Macro, there is a reason Buffet has been macro agnostic. Get way down in the weeds if you want to outperform

What are your “educated calls” based on? What insight do you have?

 

A retiree or perhaps those with retirement in sight perspective. In regard to niche markets such as small / small value and emerging markets any potential additional return comes at the cost of added volatility and that there may be long periods of underperformance. So they are only appropriate for those people who have a lot of time before they will begin drawing on their portfolio.

 

Loosely interpreted

Get on the weed for a unique insight.